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ASX ANNOUNCEMENT 21 MAY 2013

REVENUE UP, PROFIT SOUND, DIVIDEND UP AS THORN INVESTS FOR FUTURE

Highlights

NPAT sound at $28m Cash NPAT also steady at $29.8m Revenue up 8% to $203m Average ROCE continues strongly at 24.8% Basic EPS of 19.11 cents Operating cash grew to $93m Gearing levels remain conservative at 19%

Final dividend up 9% to 6 cents; distribution up to 55%

Radio Rentals record installations and earnings Cashfirst loan book now over $20m Thorn Equipment Finance (TEF) strong book build to $36m NCML strong customer acquisition will improve revenues in 2014 Rent Drive Buy trial commenced and delivering positive results

Key areas of focus

Continued development as a broader based financial services organisation Enhancement of current initiatives to optimise performance and shareholder returns

Overview

Thorns performance remained strong given ongoing challenges in the market with low levelsof consumer confidence as they continue to be impacted by cost of living increases,particularly utility costs, along with uncertainty generated by the upcoming Federal election.

The business continues to make a solid investment in the expansion of its financial servicesplatform which takes time to reach critical mass before strong returns begin to flow.

Managing Director, John Hughes, said there were a large number of positive aspects toperformance this year, from the core consumer leasing business delivering record levels ofinstallations and earnings through to the encouraging signs for future success of initiativesand an outstanding return on capital employed.

Thorns core Radio Rentals business continues to demonstrate its strength and resilience inthe market and it has been an outstanding performer in recent years compared to otherretailers. This provides a very stable platform for investment in initiatives as we develop intoa broader based financial services organisation and see other segments increase theircontributions, particularly once they achieve the all-important critical mass. Mr Hughes said.

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Radio Rentals / Rentlo

Radio Rentals offers an extensive range of technology, home and office needs, packaged

into a range of rental deals, principally under the Rent, Try, $1Buy! banner. Radio Rentalsoperates over 90 outlets nationally and has been a market leader since 1937.

Radio Rentals performed strongly, with installation dues increasing 6% over last year andthis was assisted by the successful introduction of Apple products.

Furniture was again the standout product group with installation dues increasing 46%, whilstother product categories remained relatively steady including technology products whichaccounts for some 43% of installations.

A particularly pleasing aspect was the increase in the customer retention rate from 44% to48% and clearly demonstrates a very strong level of customer loyalty.

Also, to assist customers during a time of need a hardship contract was introduced, whichhas also been successful in helping to maintain arrears and write-offs at a satisfactory level.

A 48-month Rent, Try, $1Buy!contract is being considered for introduction in the comingmonths to meet a growing demand for larger size products and whole room packages.Customer research has been extremely positive and it is expected to garner positive resultsin generating new business.

Thorn Financial Services

Thorn Financial Services (TFS) is expanding in new areas and the cornerstone of thebusiness is Cashfirst, which provides unsecured personal loans based on ResponsibleLending criteria. Loan amounts range between $2,000 and $5,000.

The Cashfirst loan book grew 26% throughout the period and closed at $21m, comparedwith $17M at FY12 year end. Arrears remained low and bad debts were 8.9% of AverageNet Receivables which underscores Thorns commitment to responsible lending policies.

Customer retention rate increased to 27%, which is a very positive indicator of customersatisfaction and the loyalty that is being built.

Earnings increased by 62%, however performance was affected by an increase in costsassociated with expanding resources as part of the investment in developing new products.

Initiatives under development include: Secured loans targeting a broader demographic; Standalone branches and store-in-store outlets in selected Radio Rentals locations; A lease to own proposition in retailers; Specialist funding e.g. legal disbursements; and Low dollar value loans, between $1,000 and $2,000.

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Thorn Equipment Finance

Thorn Equipment Finance (TEF) specialises in providing equipment financing solutions for

SMEs, corporations and government across a diversified range of products.

The book has now grown to $36m, compared with $12M at FY12 year end and $33m wasfinanced during the year across a range of equipment including IT, telephony, pokermachines, audio visual and industrial and commercial equipment.

Strategic alliances with vendors and brokers have been expanded and place the business ina sound position for continued growth.

The key to future profit contribution is the continued loan book growth which will be assistedgreatly by the new securitised funding facility.

NCML

NCML is a provider of credit and receivables management services throughout Australia.As previously reported, NCMLs performance has been affected by the loss of the ATOcontract and the restructure of the business which has now been completed. However, therehas been a significant lift in new clients including Queensland and New South Wales stategovernments, a number of large local councils along with telcos and major financialinstitutions. A consequence of winning new business is investment in human resources andtraining, meaning a time lag of several months before new contracts realise their profit

potential.

NCML is also now more active in purchasing debt ledgers given market pricing meeting ourdisciplined model. A number of successful acquisitions have been made as well asincreasing business from several key clients.

The business is now well positioned and Thorn is expecting a more positive year ahead,particularly as the benefits of the new business acquired in the last quarter flow forward.

Rent Drive Buy

Rent Drive Buy offers customers an opportunity to rent a quality vehicle on a fully maintainedbasis, with the potential to obtain finance for purchase after a year of continuous payments.

The trial of this business fully commenced in February 2013 and results to date have beenpromising including 100% customer retention along with no arrears or write-offs. Customerfeedback is very positive and the initiative will be reviewed after completion of the first halfyear of FY14.

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Legislative Changes

Thorn has been involved in discussions with the Federal Treasury in relation to

enhancements to the National Consumer Credit Protection legislation, which primarilyinvolve more disclosure around financial services products. Thorn is generally supportive ofthis direction, seeing it as beneficial for consumers and Thorns competitive position.

Funding

To assist with funding expansion in financial services, Thorn has increased its base debtfacilities through Westpac from $30m to $50m and is currently finalising a securitised facilityof an additional $50m to enable continued expansion of Thorn Equipment Finance.

Dividend Payment

A final dividend of 6 cents per share fully franked will be paid on 18 July 2013 toshareholders registered on 17 June 2013. The dividend reinvestment plan will be active forthe dividend and a discount of 2.5% will apply.

Outlook

The board and management are positive Thorn will deliver future profit growth. This is based

on an expected continuation of a solid performance of its core rental business as well as

growing returns from investments and initiatives as the Company evolves into a broader

based financial services organisation. A feature of Thorns financial services expansion

strategy is catering for underserviced alternative market areas. A complete strategic review

of Radio Rentals is being undertaken with a focus on creating new products and propositions

to appeal to a broader customer demographic.

Thorn has long been of the view that four key components are required for growth initiatives that access market opportunities, a capability to execute them, capital and time toachieve investment returns.

These factors reflect how Thorn is implementing its strategy of expansion in financialservices and it expects to deliver the results of this growth to shareholders in coming years.

For further information please contact:

John HughesManaging DirectorTelephone: (02) 9101 5044 or 0414 970 150

Ian WestbrookWestbrook Financial CommunicationsTelephone: (02) 9231 0922 or 0407 958 137

ABOUT THORN GROUP LIMITED (ASX: TGA, www.thorn.com.au)Thorn Group is a financial services company and a leader in the household goods rental market. Its core

business is Radio Rentals (Rentlo in South Australia), a brand in Australia since 1937 and has over 90 outletsnationally. Other group businesses comprise Thorn Equipment Finance, providing commercial finance, ThornFinancial Services which includes Cashfirst, offering personal loans up to $5000, and NCML, a full servicereceivables management company.